With shares of Dick’s Sporting Goods up over 50% year to date, is this stock a slam dunk or is there a penalty on this play?
It seems that even if you’re out of a job, chances are you’re still playing golf... or tennis... or something. And that translates into profits for one of the nation’s largest sporting goods stores. On Wednesday Dick's Sporting Goods posted a better-than-expected quarterly profit and raised its full-year earnings outlook.
For the full year, the company now expects to earn about $1.02 to $1.07 per share, excluding special items, up from its earlier view of 88 cents to $1.00 per share.
Not too shabby. And CEO Edward Stack tells Fast Money he’s picking up marketshare and looking to win even more. “With the closing of Joe’s in the Pacific Northwest we’re moving into the market very quickly,” he explains.
Meanwhile, Dick’s has won favor with animal lovers. The company has refused to sell the Eagles jersey bearing Michael Vick's number until company officials "evaluate the reaction of Eagles fans."
“We’re going to look at demand and make a decision,” explains Stack.
Vick, the former star quarterback for the Atlanta Falcons, was released from a federal prison in May after serving 18 months on a dogfighting conviction. (It’s worth noting that Michael Vick is now working with the Humane Society and speaking out for the proper treatment of animals, according to the Philadelphia Inquirer.)
With all things considered, how should you trade this stock?
I think the stock looks good at current levels, says Guy Adami.